15 September 2020

2020- n° 230

In August 2020, consumer prices fell back by 0.1% over one month and increased by 0.2% year on year Consumer price index - final results - August 2020

In August 2020, the Consumer Price Index (CPI) edged down by 0.1% over a month, after +0.4% in July 2020. Manufactured product prices dropped sharply (−1.2%, after a stability in July). Those of energy (+0.3% after +1.0%) and services (+0.3% after +0.9%) slowed down and those of tobacco were stable after a 0.1% increase in July. Finally, food prices rebounded slightly (+0.2% after a 0.9% drop in the previous month).

Seasonally adjusted, consumer prices fell back by 0.5%, after +0.7% in the previous month.

Year on year, consumer prices slowed down to 0.2%, after +0.8% in the previous month. This drop in inflation resulted from a downturn in manufactured products, linked to the postponed summer sales, and a slowdown in food prices. Contrariwise, energy prices fell less year on year than in July. Finally, the prices of services and tobacco rose, year on year, as the same rate as in the previous month.

Year on year, core inflation dropped, in August, to +0.5% after +1.4% in the previous month. The Harmonised Index of Consumer Prices (HICP) edged down by 0.1% over a month, after +0.4% in the previous month; year on year, it slowed down to +0.2%, after +0.9% in July.

Year on year, manufactured product prices fell back by 0.2%, after +1.8% in the previous month. This downturn resulted from that of clothing and footwear prices (−1.7% year on year after +10.1%) and a lesser rise of “other manufactured products” prices (+0.4% after +1.1%), linked to the postponed summer sales. The prices of household furniture (+2.6% after +5.2%), of games and hobbies (+0.1% after +1.6%), of tableware and household utensils (+1.2% after +2.3%) and of major household appliances (+0.4% after +1.4%) slowed down. The prices of personal computers (−3.0% after +0.6%) and travel goods (−1.9% after +4.5%) fell back. Contrariwise, the prices of new motor cars (+0.1% after stability in July) increased. Finally, health product prices fell more than in the previous month (−2.0% year-on-year, after −1.9% in July).

In August 2020, food prices slowed down for the fourth consecutive month: +0.9% year on year after +1.1% in July. The prices of fresh food produces were less dynamic (+1.5% year on year after +2.2%). Those of fresh vegetables fell more sharply (−3.7% year on year after −0.6%) and those of fresh fish fell back (−0.4% after +0.2%). Contrariwise, the prices of fresh fruits accelerated (+8.5% year on year after +7.7%). Excluding fresh produces, food prices also decelerated, to +0.8% year on year after +0.9% in the previous month. The prices of meat (+2.0% year on year after +2.5%) and bread (+0.1% year on year after +0.4%) slowed down. Contrariwise, the prices of alcoholic beverages accelerated (+1.2% year on year after +1.1%).

Year on year, the drop in energy prices softened: −7.1% in August, after −7.4% in July. Electricity prices gathered pace (+3.9% after +3.6% in July) and petroleum product prices fell less than in the previous month (−12.7% year on year, after −12.8% in July), as did gas prices (−11.9% year on year, after −13.0% in July).

Year on year, service prices increased by 0.9% in August, as in July 2020. The drop in transport prices was sharply accentuated (−4.4% year on year after −0.8%), in the wake of airfares (−12.8% after −4.5%). Health services prices decelerated (+0.3% year on year after +0.6%). The prices of “other services” accelerated (+1.6% year on year after +1.2%), due to a rebound in accommodation service prices (+1.5% after −2.6%). Communication services prices also rose (+1.8% year on year after +1.5%). Finally, the prices of housing-related services increased at the same pace as in the previous month (+0.2% year on year).

Compared with the provisional estimates published on August 28, 2020, the month-on-month and year-on-year changes in the CPI and in the HICP have been confirmed.